United Parcel Service

814 WordsMar 23, 20114 Pages
United Parcel Service UPS faced a variety of problems in the near future. UPS had to consider how to develop and grow it’s technology and information services, in order to remain competitive in the market. With that challenge, UPS had to face the challenge of balancing its intent to develop and promote from within, with the need to advance quickly using outside resources. Along a similar vein, UPS struggled with the strategic problem of how to grow their air services business. UPS has to consider whether or not to continue contracting air services from other suppliers, or to acquire another firm. Acquiring another firm would cause UPS to deal with even more problems with cultural integration. Overall, UPS was dealing with the strategic…show more content…
When looking at the IT problem UPS faces, we can see that UPS has a variety of options. The first option would be to continue their policy of internal development and promotion. This option would maintain their cultural integrity, however it would cause them to continue to be behind their competition, due to the length of time it takes to train new individuals, and the possibility that even with training, their existing employees may not have the skills to propel their technological growth. The next option UPS has is to simply hire the technological employees that they need, quickly and from the outside in order to facilitate growth. While this option gives them the speed they need to catch up with the competition, it goes against the promise they made to their employees to promote from within. The final option they should consider would be to outsource their information services department. This option would prevent their employees from feeling betrayed, since they were not overlooking UPS employees. It would also give UPS the speed needed to deal with their competitors, without forcing them to learn new skills. By outsourcing, UPS can utilize another company’s competitive advantage in information services. I recommend that UPS outsource, in order to prevent degrading the culture that had gotten UPS so far, while still allowing UPS to grow quickly and compete in a difficult
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